In the first quarter of 2024, the U.S. GDP exceeded expectations, growing by 1.4% compared to the forecasted 1.3%. Despite a slight decrease from the previous quarter’s 3.4% rise, this growth was attributed to decreased imports, increased non-residential investment, and government spending by the Department of Commerce. The GDP in dollar terms reached $28.27 trillion, marking a $312.2 billion increase with consumer spending slowing down.
Personal Consumption Expenditures (PCE) price index rose by 3.4% while core PCE index increased by 3.7%, presenting a minor upward revision. The economic indicators are vital for Federal Reserve policy decisions amidst ongoing inflation concerns.
Current-dollar personal income surged by $396.8 billion, driven by higher wages and government benefits. Disposable personal income also increased by $240.2 billion as real disposable personal income rose by 1.3%. Personal savings reached $777.3 billion with the savings rate remaining steady at 3.8%.
These figures provide insight into the U.S. economy’s current state, hinting at a cooling trend that may impact Federal Reserve decisions on interest rates. The positive investment and government spending revisions signal confidence in economic stability, while high personal income levels suggest a financial cushion for consumers, supporting future growth.